PasarPolis has become Indonesia's first official full-stack insurtech ecosystem, giving the company the ability to both distribute and underwrite its own digital insurance products.
This achievement comes after the insurtech sealed a strategic collaboration with local firm Tap Insurance, which has received a full licence from Indonesia’s financial authority to operate as an insurance underwriter.
The company will use advanced technologies and data, it says, to streamline its underwriting and claims processes, making it easier and more cost-effective to create insurance products and provide a seamless experience for consumers. Ecosystem partners like Tokopedia, Gojek, Traveloka, Xiaomi and IKEA Indonesia will also have the opportunity to design custom insurance products using the full-stack ecosystem.
The Indonesian insurance industry is still largely traditional, and most players find it difficult to digitize, with only a small number of providers able to use digital channels to offer insurance.
Indonesia is also one of the world’s most underinsured countries, with an insurance penetration rate of approximately 3.18% in 2022. However, the high cost of insurance premiums remains one of the most prohibitive factors to the uptake of insurance, together with complicated claims processes and access to products.
"The insurance gap and unequal insurance distribution continue to be major challenges in Indonesia,” says Cleosent Randing, the company’s CEO and founder. “With technology, we’re in a prime position to bridge the insurance gap by providing a wider range of suitable insurance products and services, and improving access to affordable insurance protection across all market segments, including the uninsured and the underserved of society.”